The South American cotton market is estimated to record a CAGR of 2.1% during the forecast period. Brazil is the largest cotton producer in South America, followed by Argentina with 81% and a 14% production share in 2018. South America also plays a key role in cotton exports. Brazil is the world's fourth-largest exporter of cotton, with an export value share of 11% in 2018. Demand from the domestic and global textile industry is one of the prime market drivers.
Key Market Trends
Demand from the Textile Industry
South America has some major textile-producing countries, such as Peru, Brazil, and Colombia. Peru is South America’s biggest clothing exporter. The textile industry in South America is expected to record a CAGR rate of 3.5%. The increasing textile industry in the South American market directly aids in boosting the cotton market. The global textile market is also increasing at an enormous rate, which is the key factor for Brazilian cotton exports. It is expected to grow further in the coming years.
Brazil Dominates the Export Market
Brazil is the leading cotton exporting nation in South America and the fourth-largest exporting nation in the world, exporting 56% of its production to the world. China, Vietnam, Indonesia and Bangladesh are the major export partners of Brazil with 30%, 14%, 15%, and 9% of import value share, respectively. Apart from Brazil, Argentina and Paraguay are the other cotton exporters in South America. The United States, Egypt, and Israel are some of the import partners of Brazil.
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